Analyst Turns Bullish On Viavi, Sees Sustainable Growth In Telco & Optical Markets

Rosenblatt analyst Mike Genovese upgraded Viavi Solutions VIAV from Neutral to Buy and announced the price forecast of $14.

The analyst’s bullish stance reflects growth in the Network Enablement (NE) instruments business, with segment sales rising 15% year over year and 26% sequentially in the December quarter.

The analyst noted the sales appear legitimate and sustainable, with strong momentum expected to continue over the coming quarters.

The company raised the guidance for total revenues and NE segment revenue for the third quarter, exceeding typical seasonal trends, notes the analyst.

Moreover, the NE segment is experiencing strong demand in the Aerospace and Military sectors, which account for about 10% of NE revenues and are growing at a rate higher than the segment average.

Genovese says that Viavi is experiencing growth due to increased spending by Telco and Cable companies on Field Test products for Fiber Access, Optical, and 5G, especially in North America, with some growth also seen in Europe.

Also, the company has exposure to Lab Test products for 400G, 800G, and 1.6T Datacom Optical transceivers, which now make up around 10% of NE sales and are growing at a faster pace than the segment average, adds the analyst.

The analyst estimates total revenue of $1.09 billion for 2025 and $1.16 billion for 2026.

Price Action: VIAV shares are down 0.14% at $10.80 at the last check Friday.

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